Profile: CHS Inc (CHSCP.O)
19 Jul 2019
CHS Inc., incorporated on July 15, 1936, is an integrated agricultural company, providing grain, foods and energy resources to businesses and consumers on a global basis. The Company's segments include Energy, Ag, Nitrogen Production, Foods, and Corporate and Other. The Energy segment derives its revenues through refining, wholesaling and retailing of petroleum products. The Ag segment derives its revenues through the origination and marketing of grain, including service activities conducted at export terminals; through wholesale sales of crop nutrients; from sales of soybean meal, soybean refined oil and soy flour products; through the production and marketing of renewable fuels, and through retail sales of petroleum and agronomy products, processed sunflowers, feed and farm supplies. The Nitrogen production segment consists equity method investment in CF Industries Nitrogen, LLC (CF Nitrogen). The Food segment consists the Company's equity method investment in Ventura Foods, LLC (Ventura Foods). The Company's corporate and other segment includes wheat milling operations, as well as business solutions operations, which consist of commodities hedging, insurance and financial services related to crop production.
The Company provides a range of products and services, including agricultural inputs, such as fuels, farm supplies, crop nutrients and crop protection products, and agricultural outputs, such as grains and oilseeds, grain and oilseed processing, renewable fuels and food products. The Company's businesses primarily include financing, insurance, hedging and other service activities related to crop production.
The Company is a cooperative energy company engaged in operations of petroleum refining and pipelines; the supply, marketing and distribution of refined fuels (gasoline, diesel fuel and other energy products); the blending, sale and distribution of lubricants, and the wholesale supply of propane and other natural gas liquids. As of August 31, 2016, the Energy segment processed crude oil into refined petroleum products at the Company's refineries in Laurel, Montana and McPherson, Kansas and sold the products under the Cenex brand to member cooperatives and other independent retailers through a network of over 1,500 sites, the majority of which were convenience stores marketing Cenex branded fuels.
The Company has operations in Laurel Refinery, McPherson Refinery and Other Energy Operations. Its Laurel, Montana refinery processes medium and high sulfur crude oil into refined petroleum products that primarily include gasoline, diesel fuel, petroleum coke and asphalt. As of August 31, 2016, the Company's McPherson, Kansas refinery processed approximately 75% low and medium sulfur crude oil and approximately 25% heavy sulfur crude oil into gasoline, diesel fuel and other distillates, propane and other products. The refinery sources its crude oil through its own pipelines, as well as common carrier pipelines. The low and medium sulfur crude oil is sourced from Kansas, North Dakota, Oklahoma and Texas, and the heavy sulfur crude oil is sourced from Canada.
As of August 31, 2016, the Company's other energy operations owned six propane terminals, four asphalt terminals, seven refined product terminals and three lubricants blending and packaging facilities. The Company also owns and leases a fleet of liquid and pressure trailers and tractors, which are used to transport refined fuels, propane, anhydrous ammonia and other products. The Company's energy segment produces and sells (primarily wholesale) gasoline, diesel fuel, propane, asphalt, lubricants and other related products and also provides transportation services. In addition to selling the products refined at the Company's Laurel, Montana, and McPherson, Kansas refineries, it purchases refined petroleum products from third parties.
The Company's Ag segment includes its grain marketing, country operations, crop nutrients, processing and food ingredients, and renewable fuels businesses. These businesses work together to facilitate the production, purchase, sale and eventual use of grain and other agricultural products within the United States, as well as internationally. The Company's Ag segment provides local cooperatives and farmers with the inputs and services they need to produce grain and raise livestock. These include seed, crop nutrients, crop protection products, animal feed, animal health products, refined fuels and propane. The Company also buys and merchandises grain in both domestic and international markets. The Company also produces refined oils, meal and soy flour at its processing facilities.
The Company's grain marketing operations purchase grain directly from agricultural producers and elevator operators primarily in the mid-western and western United States and indirectly through the Company's country operations business. As of August 31, 2016, the Company's country operations business operated 487 agri-operations locations through 61 business units dispersed throughout the mid-western and western United States and Canada. As of August 31, 2016, it also manufactured animal feed through eight owned plants and four limited liability companies and processed sunflowers for human food and other uses. As of August 31, 2016, crop nutrient products were delivered directly to the Company's customers and its country operations business from the manufacturer or through 20 inland and river warehouse terminals and other non-owned storage facilities located throughout the United States. As of August 31, 2016, the Company's renewable fuels business produced 260 million gallons of fuel grade ethanol and 680 thousand tons of dried distillers grains with solubles (DDGS) annually.
As of August 31, 2016, CF Nitrogen had four production facilities located in Donaldsonville, Louisiana; Port Neal, Iowa; Yazoo City, Mississippi; and Woodward, Oklahoma. CF Nitrogen produces nitrogen-based products, including, methanol, Urea-Ammonium Nitrate (UAN) and urea and related products.
The Foods segment consists equity method investment in Ventura Foods, which produces vegetable oil-based products, such as packaged frying oils, margarine, mayonnaise, salad dressings and other food products. As of August 31, 2016, Ventura Foods had 16 manufactured and distribution locations across the United States and Canada. Ventura Foods sources its raw materials, which consist primarily of soybean oil, canola oil, palm/coconut oil, peanut oil and other ingredients and supplies, from various national and overseas suppliers, including the Company's oilseed processing operations.
Corporate and Other
The Company's subsidiary, CHS Capital, LLC, provides cooperative associations with a range of loans that meet commercial agriculture needs, including operating, term, revolving and other short and long-term options. It also provides an array of loans to producers, including crop input, crop operating, feed, livestock and margin call. The Company's subsidiary, CHS Hedging, LLC, provides full-service commodity risk management services primarily to agricultural producers and commercial agribusinesses in the areas of agriculture and energy. The Company's subsidiary, CHS Insurance Services, LLC, is a full-service independent agency that offers property and casualty insurance, surety bonds, safety resources, employment services and group benefits.
5500 Cenex Dr
INVER GROVE HEIGHTS MN 55077-1721